How Much Money Do You Need to Start a Gold IRA? (2024)

Whether you’ve decided to open a gold IRA (more commonly called a precious metals IRA) or you’re still on the fence, you’re probably wondering how much it costs to get started. There’s a common misconception that self-directed IRAs are significantly more expensive, challenging, and time-consuming to establish than mainstream accounts. Unfortunately, this deters many investors from tapping into the serious advantages offered by a gold IRA. In reality, precious metals IRA fees are often more affordable than standard retirement accounts. It’s time to set the record straight regarding gold IRA costs.

Precious Metals IRA Fees

The costs associated with a gold IRA can be generally broken down into setup, maintenance, and storage fees.

Setup Fees: The upfront charge of establishing a precious metals IRA typically hovers around a $50 (custodian fee). However, if an LLC is involved, an additional fee to create the LLC is necessary. That fee typically starts at $450.

Maintenance Fees: The annual cost of account maintenance is roughly $100 although LLCs will pay more for the additional work involved, plus an annual $50 fee to keep the LLC active.

Storage Fees: The annual gold IRA storage fees levied by custodians come out to around $100.

BUYER BEWARE of companies claiming to waive Precious Metals IRA fees. Read This

Keep in mind that all costs vary based on the precious metals provider and custodian you choose. An experienced Precious Metals Advisor can guide you through these gold IRA costs so you know exactly what you’ll pay before getting started.

How much do you need to start a gold IRA?

You don’t need as much as you might think to start a gold IRA. For newly established accounts, there’s a minimum of $5,000. This minimum doubles to $10,000 for transfers or rollovers from other IRAs. These requirements ensure investors are getting a worthwhile return on their investment. This means the initial setup fees and maintenance fees would only reflect a small percentage of your overall investment.

How much can you put in a gold IRA?

Just like more common retirement accounts, there are three ways to add funds to a gold IRA:

1. Rollovers
2. Transfers
3. Contributions.

You can perform a gold IRA rollover by transitioning your current retirement account into a self-directed IRA. There’s no limit on the amount you can roll over. Similarly, transferring funds from one gold IRA to another isn’t subject to a cap, although investors are limited to one IRA transfer a year. On the other hand, annual gold IRA contributions are restricted. The IRS increased 2024 contributions to $7,000, unless you’re over 50 in which the catch-up limit is $8,000.

Are gold IRAs worth it?

It depends on your personal investment goals. If you’re looking for a reliable way to hedge against volatile market conditions with precious metals while taking advantage of tax-deferred benefits, a gold IRA is an excellent choice. This unique retirement account comes with a number of worthwhile perks.

Easy to set up.

A gold IRA is remarkably easy to set up, especially when working with a reputable Precious Metals Advisor and Liaison. These experts can handle all the paperwork on your behalf, help you find a reliable custodian, and advise you on the best IRA-approved gold and silver assets based on your investment goals.

Affordable to maintain.

Once you establish your gold IRA, the only thing you must worry about is making an annual IRA contribution. Your custodian handles the storage, and your Precious Metals Advisor can help you find the right gold and silver coins and bars based on your goals. There’s not much required on your end to keep your account open except for a small fee that’s usually automatically charged.

Learn more: How to Make an Annual Contribution to Your Precious Metals IRA – 3 Easy Steps

Increased diversification.

Investing solely in paper assets, even those linked to the gold market, is the equivalent of putting all your eggs in one basket. Generally, the more diversified a retirement account is, the better the performance. That means greater returns and increased stability which is a winning combination when preparing for retirement in the midst of an unstable economy.

Minimal risk.

A gold IRA works to de-risk your investments in more than one way. With greater diversification through exposure to physical precious metals like gold and silver coins, gold bars, and silver bars, your retirement savings has greater resistance to market downturns and inflation. Additionally, you’ll have greater ownership and less counterparty risk when compared to paper assets which are subject to the whims of other parties involved.

Learn more about the advantages and disadvantages of a gold IRA by reading: Gold IRA Pros and Cons

Buyer Beware: Free Gold & Silver?

When searching for gold IRA options, you might come across some enticing promises of free gold and silver. Some Precious Metals IRA companies misleadingly claim to offer investors an attractive amount of gold or silver assets when setting up an account, ostensibly, with no strings attached. In reality, the equivalent value of these “free” offers is usually baked into other costs associated with setting up an IRA account. In other words, you’ll end up paying the full amount to set up a gold IRA one way or another. You’re better off going with a gold IRA company that’s upfront and transparent about the costs.

If you want to know if a gold IRA is a good match for your personal investment goals, please call us toll-free at 1 (888) 812-9892 or use our live chat function. One of our Precious Metals Advisors would be happy to answer all your questions.